Economic study shows Canada Mexico trade boosts jobs wages and farm growth
Trade with Canada and Mexico continues to deliver strong economic benefits to rural communities across the United States, according to a new economic analysis released by the Agricultural Coalition for USMCA. The findings were shared during a press conference held in Washington, D.C.
"Our analysis shows that USMCA is a powerful driver for employment, investment and long-term competitiveness in the U.S. agricultural sector," said Krista Swanson, chief economist for the National Corn Growers Association, a member of the coalition. "While the agreement is due for a few targeted improvements, overall, it is critical to the farm economy and a key part of rural America's success and resilience, particularly during tough economic times like we are in now."
The analysis highlights the important role of the United States Mexico Canada Agreement in supporting farm income, jobs, and long-term competitiveness in the agricultural sector. Coalition members urged leaders from all three countries to renew and strengthen the agreement as it enters its formal review period this year.
Using a 2024 base-year model, the study evaluated the impact of U.S. agricultural and seafood exports to Canada and Mexico under USMCA. Results showed that these exports generated $149 billion in total economic output. This activity supported nearly 500,000 U.S. jobs and provided $36 billion in wages.
The analysis also found that every $1 in agricultural exports under USMCA created an additional $2.45 in economic activity across the United States. Overall, USMCA-related agricultural and seafood trade contributed $64 billion to U.S. gross domestic product and supported $13 billion in federal, state, and local tax revenue.
Industry leaders emphasized that the agreement has helped improve market access and stability for many farm sectors. Since USMCA took effect, U.S. fresh fruit export values increased by 34 percent, while vegetable exports grew by 14 percent. These gains show the value of strong trade relationships across North America.
"The long‑term success of USMCA is a top priority for our members," said International Fresh Produce Association Chief Global Policy Officer Alexis Taylor. "Since the agreement took effect, fresh U.S. fruit export values have increased by 34%, while U.S. vegetable exports have grown by 14%. These gains highlight the tangible value USMCA delivers across the fresh produce supply chain and reinforce the importance of a strong, integrated North American trade environment."
The dairy sector also highlighted the importance of Canada and Mexico as key export markets. Leaders noted that USMCA plays a vital role in supporting dairy sales and future growth opportunities.
Under the agreement, the United States, Canada, and Mexico must begin a formal review by July. During this process, the countries will decide whether to renew the agreement, make targeted updates, or change how consultations are handled.
"Mexico is a very lucrative market for America's dairy farmers, and Canada too represents important export sales as well as the opportunity for more growth," said National Milk Producers Federation and U.S. Dairy Export Council Executive Vice President for Trade Policy and Global Affairs Shawna Morris.
"USMCA is vital to our ability to trade with both partners. We urge the president to renew the agreement with targeted changes that will make it even more robust and helpful to farmers," said Morris.
Coalition members stressed that maintaining USMCA with careful improvements will help protect rural jobs, strengthen the farm economy, and ensure long-term stability for American agriculture.
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